We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Offset mortgage - borrowing from reserve

Options
Flugelhorn
Flugelhorn Posts: 7,312 Forumite
Part of the Furniture 1,000 Posts Photogenic Name Dropper
edited 21 June 2018 at 2:21PM in Mortgages & endowments
Have had an offset mortgage for 300k since 2007 (so prior to the credit crunch) - 40k left owing on it but this is fully offset and has been for some years.

Might want to borrow some of the remaining 260k at some stage to enable purchase of retirement property

Does anyone know how you borrow the money ? I think you used to just pay it out of the linked account at one time but suspect may have to jump through hoops these days - do they treat it as new borrowing?

Comments

  • TrickyDicky101
    TrickyDicky101 Posts: 3,529 Forumite
    Part of the Furniture 1,000 Posts
    Are you sure you are able to borrow back money (ie do your terms & conditions permit it)?
  • Flugelhorn
    Flugelhorn Posts: 7,312 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    it is described as a "borrowing facility" and says:
    You can apply for additional borrowing at your existing rate with no fee. You can also borrow back up to your agreed mortgage facility

    At the time we took out the mortgage it was very much sold as "you can have the money at any time / spend it on anything" of course that was pre-crunch, I just wondered if others had experience of borrowing back the money?
  • TrickyDicky101
    TrickyDicky101 Posts: 3,529 Forumite
    Part of the Furniture 1,000 Posts
    It would be worth giving them a call to establish what you need to do to borrow the money back. Certainly sounds like you should be able to. That's a great facility to have :envy:
  • Flugelhorn
    Flugelhorn Posts: 7,312 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I think I'll have to do that, hate talking to financial institutions but think I really need to know.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Terms and conditions will be updated every year to accord with current regulations. You'll need to apply and be subject to current lending criteria. The question then is how will you repay the £300k owed.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,529 Forumite
    Part of the Furniture 1,000 Posts
    Thrugelmir wrote: »
    Terms and conditions will be updated every year to accord with current regulations. You'll need to apply and be subject to current lending criteria. The question then is how will you repay the £300k owed.

    That is simply not my experience with my NationWide mortgage with has a borrowback facility.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 21 June 2018 at 9:53PM
    What lender is the mortgage with?

    Sounds like it might be Barclays when you say linked account and reserve?

    If so, you can just transfer the money out of the reserve, up to its limit amount.

    Bear in mind it will be repayable in full when your mortgage reaches its maturity date. Again, if Barclays, Interest will be charged at the rate of the mortgage and interest costs charged monthly, but no capital payment will be taken for repayment towards the drawn reserve.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Was it Halifax? They offered an offest reserve some years ago.
  • Flugelhorn
    Flugelhorn Posts: 7,312 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 22 June 2018 at 8:28AM
    It is RBS offset flexible - It finishes in 2023, there'll be enough money to pay it off then
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.